Tuesday, 24 January 2017

Well, Nice! Its great when things go right! ( its not always like this and we often lick our wounds and nurse our egos on a regular basis but hopefully live to trade another day ). I really didnt expect this breakout to happen so soon and we have seen a text book setup for a reaction line trade. There is no doubt that we will see a further attempt at the upside today but expect we will see a lower high ( previous high 271 area)

Note below the chnage in line location as we drop down to the 30 min time frame

now look when we dropdown to15 mins.... line location. How can a line be in two places at once. The truthis what i have often discussed on this site
Each line is located in a different position in each time frame.This is becuase we are missing a dimension on our X & Y axis charts... take a look

Lets see what the US session brings.WE have rising support at 263.00 but i am not content to get long here as we have a down sloping RL that may bring price back. However if we see new highs i am prepared to go long on stop around the 265.80 area with a stop below close of 4 hr bar ( 264.00 area) and the reaction line breakout rules apply to this trade. A break and close below the blue upsloping ML will mean a return to the thin green horizontal ML's seen around 256.00 and below.